Analyst Note| Matthew Dolgin, CFA |
CyrusOne stock’s 7% pop on Sept. 28 was the result of a rumor reported by Reuters that the firm is working with Morgan Stanley to explore a sale of the company. The rumor is not surprising. Similar rumors have arisen multiple times over the past two years, and executive team instability and mediocre recent performance lead us to conclude that CyrusOne selling itself is a good option. We are maintaining our $66 fair value estimate, as the rumors have no bearing on our forecast, but we concede that a potential acquirer would likely bid higher, as recent years have seen a hot market for data center properties.